Karnataka woos Japanese biggies for investment

Having drawing interest from Germany and recently, China, State official landed up in Japan to woo the likes of Mitsubishi Corporation, Kawasaki Heavy Industries Limited, Suzuki Motor Corporation, Citizen Watch Co. Limited, Seiko Epson Corporation and Toshiba Corporation among others.

Speaking to Deccan Herald from Tokyo, Minister for Large & Medium Scale Industries Murugesh R Nirani said “we have received interest from both service and manufacturing companies with more than 30 of 68 firms that participated in the discussion showing interest.”
The State, he said is key on incresing Japanese firms presence in the State which is currently about 107 (from 840 in India), as also to get technical know-how through foreign technology transfer (FTT) approvals.

“Once they establish themselves here, a lot of knowledge exchange can happen and we can increase FDI inflow  from Japan from the current 3.35 per cent (April 2000-June 2009),” Nirani said. Currently, FTT approvals from Japan amounts to about 10.89 per cent of approvals in India.

Sources said the State delegation held talks with Ministry of Economy, Trade & Industry, Japan (METI) and Japan & Japan External Trade Organisation (Jetro) on Wednesday, where Commissioner for Industrial Development Raj Kumar Khatri made a presentation on investment climate and infrastructure developments in Karnataka, in the presence of METI Director for Southwest Asia & Oceania, International Trade Policy Bureau, Y Sekine.

Some major companies that attended included Toyota Motor Corporation, Sumitomo Corporation, IHI Corporation, NDR Co Limited, Australia & New Zealand Banking Group Limited (ANZ), Japan International Co-operation Agency, Komatsu Limited, System Consultants Co Limited. Further, financial institutions like of Bank of Tokyo are expected to study the proposals made by the government.

Incidentally, in a separate meeting with Toyota Motor Corporation Senior Managing Director Okabe, the government is understood to have asked the firm to establish an auto component manufacturing unit in Shimoga district. Toyota agreed to conduct a feasability study, sources said following successful negotiation to double its investment.